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CELESTICA INC (CLS) Stock Fundamental Analysis

NYSE:CLS - New York Stock Exchange, Inc. - CA15101Q2071 - Common Stock - Currency: USD

119.25  -5.77 (-4.62%)

After market: 119.7 +0.45 (+0.38%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CLS. CLS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has an excellent profitability rating, but there are some minor concerns on its financial health. CLS shows excellent growth, but is valued quite expensive already. These ratings could make CLS a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year CLS was profitable.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in each of the past 5 years.
CLS had a positive operating cash flow in each of the past 5 years.
CLS Yearly Net Income VS EBIT VS OCF VS FCFCLS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

CLS has a better Return On Assets (6.36%) than 77.50% of its industry peers.
CLS has a better Return On Equity (20.73%) than 90.83% of its industry peers.
CLS's Return On Invested Capital of 14.36% is amongst the best of the industry. CLS outperforms 91.67% of its industry peers.
Industry RankSector Rank
ROA 6.36%
ROE 20.73%
ROIC 14.36%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CLS Yearly ROA, ROE, ROICCLS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of CLS (4.08%) is better than 67.50% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
CLS's Operating Margin of 5.61% is fine compared to the rest of the industry. CLS outperforms 68.33% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
CLS's Gross Margin of 10.47% is on the low side compared to the rest of the industry. CLS is outperformed by 78.33% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
Industry RankSector Rank
OM 5.61%
PM (TTM) 4.08%
GM 10.47%
OM growth 3Y27.84%
OM growth 5Y31.24%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
CLS Yearly Profit, Operating, Gross MarginsCLS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
There is no outstanding debt for CLS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CLS Yearly Shares OutstandingCLS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
CLS Yearly Total Debt VS Total AssetsCLS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 4.13 indicates that CLS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.13, CLS is doing good in the industry, outperforming 68.33% of the companies in the same industry.
The Debt to FCF ratio of CLS is 2.47, which is a good value as it means it would take CLS, 2.47 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.47, CLS is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
CLS has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CLS (0.49) is worse than 72.50% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.47
Altman-Z 4.13
ROIC/WACC1.82
WACC7.88%
CLS Yearly LT Debt VS Equity VS FCFCLS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

CLS has a Current Ratio of 1.47. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.47, CLS is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that CLS may have some problems paying its short term obligations.
CLS has a worse Quick ratio (0.87) than 85.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 0.87
CLS Yearly Current Assets VS Current LiabilitesCLS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 61.32% over the past year.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.17%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)61.32%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%46.05%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%18.93%

3.2 Future

CLS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.27% yearly.
The Revenue is expected to grow by 12.79% on average over the next years. This is quite good.
EPS Next Y15.13%
EPS Next 2Y18.39%
EPS Next 3Y18.27%
EPS Next 5YN/A
Revenue Next Year9.58%
Revenue Next 2Y11.53%
Revenue Next 3Y12.79%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
CLS Yearly Revenue VS EstimatesCLS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
CLS Yearly EPS VS EstimatesCLS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 30.42, the valuation of CLS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CLS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. CLS is around the same levels.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 26.42.
CLS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CLS is around the same levels.
Industry RankSector Rank
PE 30.42
Fwd PE 26.42
CLS Price Earnings VS Forward Price EarningsCLS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLS.
The rest of the industry has a similar Price/Free Cash Flow ratio as CLS.
Industry RankSector Rank
P/FCF 36.27
EV/EBITDA 21.58
CLS Per share dataCLS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CLS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 18.27% in the coming years.
PEG (NY)2.01
PEG (5Y)0.63
EPS Next 2Y18.39%
EPS Next 3Y18.27%

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0

5. Dividend

5.1 Amount

CLS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CELESTICA INC

NYSE:CLS (2/21/2025, 8:10:03 PM)

After market: 119.7 +0.45 (+0.38%)

119.25

-5.77 (-4.62%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)01-30 2025-01-30/bmo
Earnings (Next)04-22 2025-04-22/amc
Inst Owners83.02%
Inst Owner Change2.75%
Ins Owners1.24%
Ins Owner Change24.77%
Market Cap13.84B
Analysts80
Price Target77.09 (-35.35%)
Short Float %2.51%
Short Ratio0.79
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.65%
Min EPS beat(2)10.52%
Max EPS beat(2)10.78%
EPS beat(4)4
Avg EPS beat(4)12.62%
Min EPS beat(4)10.52%
Max EPS beat(4)17.99%
EPS beat(8)8
Avg EPS beat(8)9.63%
EPS beat(12)12
Avg EPS beat(12)9.97%
EPS beat(16)16
Avg EPS beat(16)9.91%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)2.4%
Max Revenue beat(2)5.37%
Revenue beat(4)4
Avg Revenue beat(4)3.44%
Min Revenue beat(4)1.78%
Max Revenue beat(4)5.37%
Revenue beat(8)8
Avg Revenue beat(8)2.95%
Revenue beat(12)11
Avg Revenue beat(12)3.32%
Revenue beat(16)13
Avg Revenue beat(16)2.36%
PT rev (1m)26.97%
PT rev (3m)60.52%
EPS NQ rev (1m)2.5%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0.7%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.66%
Valuation
Industry RankSector Rank
PE 30.42
Fwd PE 26.42
P/S 1.5
P/FCF 36.27
P/OCF 25.74
P/B 7.61
P/tB 11.95
EV/EBITDA 21.58
EPS(TTM)3.92
EY3.29%
EPS(NY)4.51
Fwd EY3.78%
FCF(TTM)3.29
FCFY2.76%
OCF(TTM)4.63
OCFY3.89%
SpS79.61
BVpS15.68
TBVpS9.98
PEG (NY)2.01
PEG (5Y)0.63
Profitability
Industry RankSector Rank
ROA 6.36%
ROE 20.73%
ROCE 17.92%
ROIC 14.36%
ROICexc 16.65%
ROICexgc 22.67%
OM 5.61%
PM (TTM) 4.08%
GM 10.47%
FCFM 4.13%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y27.84%
OM growth 5Y31.24%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score8
Asset Turnover1.56
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.47
Debt/EBITDA 1.27
Cap/Depr 86.92%
Cap/Sales 1.69%
Interest Coverage 8.74
Cash Conversion 77.08%
Profit Quality 101.17%
Current Ratio 1.47
Quick Ratio 0.87
Altman-Z 4.13
F-Score8
WACC7.88%
ROIC/WACC1.82
Cap/Depr(3y)88.59%
Cap/Depr(5y)69.89%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)108.38%
Profit Quality(5y)159.89%
High Growth Momentum
Growth
EPS 1Y (TTM)61.32%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%46.05%
EPS Next Y15.13%
EPS Next 2Y18.39%
EPS Next 3Y18.27%
EPS Next 5YN/A
Revenue 1Y (TTM)21.17%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%18.93%
Revenue Next Year9.58%
Revenue Next 2Y11.53%
Revenue Next 3Y12.79%
Revenue Next 5YN/A
EBIT growth 1Y42.82%
EBIT growth 3Y52.92%
EBIT growth 5Y44.86%
EBIT Next Year39.15%
EBIT Next 3Y23.53%
EBIT Next 5YN/A
FCF growth 1Y42.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y37.12%
OCF growth 3Y27.84%
OCF growth 5Y6.55%